Impact of loadshedding in South Africa: A CGE analysis

Abstract. The aim of this paper is to provide a practical contribution to the body of knowledge on the impact of loadshedding in South Africa. This study adopted a pragmatic research methodology by using a computable general equilibrium (CGE) model for empirical analysis. This study estimates that loadshedding will reduce economic growth by 2.3%, this higher than the Banks earlier prediction of a 0.6%. This study is limited to the effects of loadshedding and shed light on the South African economy that has been adversely affected by the Covid 19 pandemic and its recovery trajectory which is now stifled by persistent load shedding. Empirical analysis of the effects of loadshedding through the usage of the CGE model establishes the originality of this study.Keywords. Loadshedding; Electricity; Energy; CGE model.JEL. D58; L90; L94